A Written Report

Submitted in Partial Fulfillment

Of the Requirement of the Course
BA 18

Submitted by:
Alfeche, Charles
Casenas, Katrina Philline Mae
Go, Mike
Jubay, Brian
Roche, Jaymar
Skibba, Dominic
Tan, Alessa Rose
Tindugan, Mary Linnel

Submitted to:

Dr. Rico Salma

TABLE OF CONTENTS

TOPIC

Policy
Rules
Procedures
Strategy
Program
Budget
Policy vs Procedure
Policy vs Strategy

REPORTER

POLICY
The set of basic principles and associated guidelines,
formulated and enforced by the governing body of an
organization, to direct and limit its actions in pursuit of long-term
goals. These are regarded as a mini mission statement and are
designed, by taking the opinion and general view of a number of
people in the organization regarding any situation. The list of
rules or the framework for the task that help the management of
an organization to determine what is to be done, in a particular
situation.

RULES
These are the standard set of instructions made for people,
which explains how things are to be done. These are guidelines
that are provided to maintain smooth functioning of an
organization and to maintain peace and harmony among its
people. These are also an informal set of guidelines that state
what a person must and must not do and are prone to being
changed and altered depending on the place, organization and
people.

PROCEDURES
A schedule of activities which needs to be performed, one
after the other, in a fixed period, having a proper beginning and
end. These are made for the successful completion of a program.
They are made for directing the lower level workers of the
organization. There are developed to avoid the overlapping of

actions and haphazard manner of performing activities. This

saves a lot of time and a proper series of actions is framed,
which will reduce chaos (Enaohwo, 2013).

STRATEGY
It is game plan, chosen to achieve the organizational
objectives, gain customers trust, attain competitive advantage
and to acquire a market position. It is a combination of flexibly
designed corporate moves, through which an organization can
compete with its rivals successfully. It is a combination of wellthought intent and actions which lead to the organization
towards its desired position or destination.

PROGRAM
A plan of action aimed at accomplishing a clear business
objective, with details on what work is to be done, by whom,
when, and what means or resources will be used. It is a complex
set of goals, policies, procedures, rules, task assignments, steps
to be taken, resources to be employed and other elements
necessary to carry out a given course of action; supported by
budgets. It is a planned sequence and combination of activities
designed to achieve specified goals within set policies.

BUDGET
An estimate of costs, revenues, and resources over a
specified period, reflecting a reading of future financial
conditions and goals. It is a statement of expected results
expressed in numerical terms. It includes the numerical

statement in terms of expected cash flow, expenses and

revenues, capital outlays or labor or machine hour utilization.

POLICY VS PROCEDURE
BASIS FOR
COMPARISON
Meaning

Nature

Reflects
Best Implemented
when
In Support of
Involves

POLICIES
A precise statement
which contains the set
of principles acting as
guidelines for
achieving the goals of
an organization is
known as policy.
Policies are flexible in
nature i.e. they allow
exceptional situations.
The mission of the
organization.
Fully acceptable by the
people
Strategies
Decision Making

PROCEDURES
The procedure is a
systematic sequence
for an activity or task
which is predefined by
an organization.

Procedures are rigid in

nature.
Practical applicability of
the policies.
Follow a logical process
Programs
Actions

The major difference between policies and procedures are as

under:

1. Policies are those terms and conditions which direct the

company in making a decision. Procedures are the
sequential steps which direct the people for an activity.
2. Policies are not hard and fast rules as they permit any
extraordinary and unconventional situation. Conversely,
Procedures are strict in nature, which needs to be followed
in the series.
3. Policies reflect the ultimate mission of the organization.
Unlike Procedures, that are made to show the practical
application of the policies.
4. Policies are made to support the strategies while
Procedures are helpful in the implementation of programs.
5. Policies are decision oriented, but procedures are action
oriented.
6. Policies need to be thoroughly accepted by the people who
are influenced by them. On the other hand, there should be
a methodical process in the procedure.

EXAMPLES OF POLICIES
a)
b)
c)
d)
e)

Recruitment policy
Credit policy
Mark up policy
Privacy policy
Payment policy

EXAMPLE OF PROCEDURE
Suppose an order of materials has to be placed then the
following procedure needs to be followed.
Step 1. Stored Department will send a Purchase
Requisition to Purchase
Department.

Step 2. Purchase Department will analyze and compare

the Bill of Materials.
Step 3. Receiving Quotations from various suppliers.
Step 4. Evaluation of Quotation concerning price,
quality, quantity, etc.
Step 5. Placement of order.
Step 6. Receiving materials from supplies.
Step 7. Checking of materials.
Step 8. Preparation of Material Received Note.
Step 9. Making payment to suppliers.
POLICY VS STRATEGY
Basis for Comparison
Meaning

What is it?
Nature
Orientation
Formulation

Approach

Strategy
Strategy
is
a
comprehensive
plan,
made to accomplish the
organizational goals.
Action plan
Flexible

Policy
Policy is the guiding
principle that helps the
organization to take
logical decisions.
Action principle
Fixed, but they allow
exceptional situations
Action
Decision
Top level management Top level management
and
Middle
level
manangement
Extroverted
Introverted

The following are the major differences between strategy and

policy
1. The strategy is the best plan opted from a number of
plans, in order to achieve the organizational goals
and objectives. The policy is a set of common rules
and regulations, which forms as a base to take the
day to day decisions.

2. The strategy is a plan of action while the policy is a

principle of action.
3. Strategies can be modified as per the situation, so
they are dynamic in nature. Conversely, policies are
uniform in nature. However, relaxations can be made
for unexpected situations.
4. Strategies are concentrated toward actions, whereas
policies are decision oriented.
5. The top management always frames strategies, but
sub-strategies are formulated at the middle level. In
contrast to policy, they are in general, made by the
top management.
6. Strategies deal with external environmental factors.
On the other hand, policies are made for internal
environment of business (Pearl, 2011) .

References
Enaohwo, O. M. (2013, April 19). Retrieved from Sweetprocess:
http://www.sweetprocess.com/what-are-the-differencesbetween-a-policy-a-process-and-a-procedure-why-knowing-thisis-the-key-to-scaling-and-automating-your-business/
Pearl, E. (2011, December 27). Difference between rules, policies and
procedures. Retrieved from Enotes:
http://www.enotes.com/homework-help/what-differencebetween-rules-policies-procedure-304049